DRTV’s Growth in India Setto Explode

Marketers around the world continue
to be enamored with the growth story
of India. The country recorded its
second straight year of 9-percent-plus
gross domestic product (GDP) growth in 2007, while
its stock market, as measured by the bellwether Sun-sex, surged 39 percent. Yet, perhaps of all the BRIC
countries (Brazil, Russia, India and China), India is
one of the most complex for marketers to succeed in.

It’s helpful to think of India as a group of different
countries rather than one homogenous nation. With
more than 400 languages, dozens of religions, regional
cultural differences and multiple political parties
(220 at last count), India is unique. In some respects,
its growth has not been as spectacular as some other
emerging markets, like China, which is relatively
homogenous and has therefore not had to wrestle
with all these differences or with the “
two-steps-for-ward-one-step-back” development that is often typical
of emerging market democracies where politics can
sometime intervene with growth. India has to answer
to an electorate while China by contrast can change
policies or decide to build a new factory without having to worry too much about politics.

India has a population of 1. 1 billion, but one-third
live below the poverty line. China, by comparison,
has a population of 1. 3 billion — but only one-sixth
live below the poverty line.

There are about 15 DRTV companies currently
operating in India. Some of these are smaller regional
players, while a few are national in scope covering all
the regions of India plus Sri Lanka, Pakistan and parts
of the Middle East on satellite. There are no shopping
channels in India, but many DRTV companies there
have plans to launch their own channels soon.

The print and retail business is a very active partof the Indian DRTV distribu-tion model with the largerplayers each having producedits own catalogs and set upits own networks of “As SeenOn TV” stores throughout thecountry. Many also sell directlyto established domestic retailchains. There are more than

By Richard Stacey

50 retail chains in India with more than 200 stores
each. There is discussion about regulatory changes
that may see U.S. retailers like Wal-Mart enter the
market.

Few foreign DRTV firms operate in India, preferring to distribute their shows through international
syndicators or directly through local DRTV companies. One exception is Guthy-Renker, which has
recently entered the market and operates out of New
Delhi. Industry veteran Priya Ghai, Guthy-Renker’s
managing director in India, notes, “Guthy-Renker
sees India as a lucrative market for its beauty products,
like Proactiv Solution.” The company has invested
the past year in setting up its local operations and
getting the required approvals and is now in the final
stages of bringing its infomercials to air in India.

Two local DRTV companies that are achieving
success in India are TELEBrands India and Asian
Sky Shop. Both companies have been on the air
in India for more than 10 years. Based in Mumbai,
TELEBrands India operates nationally. Managing Director Hitesh Israni says that the business has grown
tremendously over the years. “Generally, fitness and
beauty products can be good sellers provided the price
is attractive” says Israni. Airtime is available for both
short- and long-form DRTV formats.

Asian Sky Shop is also based in Mumbai and is
managed by Bimal Selarka, CEO-managing director.
The company claims it has handled more than 1,000
products. “We have a very strong fitness business
and are also growing rapidly in the retail distribution
area,” says Selarka.

Many of the products on TV in India are American DRTV programs overdubbed, but there are at
least an equal number of locally produced DRTV
programs as well. The same categories of products are
represented that one might typically find on the air in
the United States. There are different telephone numbers noted for different cities or regions and all calls-to-action include the option of Internet ordering.

Entrepreneurs in India say the opportunities to
create wealth have never been greater and that the
DRTV industry is one that is strong and vibrant and
is expected to continue its tremendous growth in the
coming years. ■